Money Smarts Blog

Ever thought about switching your checking account? Don’t worry, you’re not alone! Maybe that frustrating customer service call pushed you to the edge. Or maybe that new monthly fee made you rethink your finances — who needs that extra coffee run anyway? Whatever the reason, it’s time to consider a change. Spoiler alert: Switching banks is easier than you think!

When should you consider switching financial institutions?

• New beginnings: Starting college, trade school, or a new chapter in life? Open your first account with a bank that helps guide you every step of the way.
• Life changes: Getting married? Combine your accounts in one place and earn interest while you save.
• Fresh starts: Going through a separation? Open a new account for a judgment-free fresh start.
• Better service: Unhappy with your current bank? It might be time to explore options that really meet your needs.

What holds people back?

We get it — switching accounts might feel like a hassle. But don’t worry! It’s easier than setting up a new playlist. Here’s what might hold you back:

• It feels time-consuming: Sure, it can sound overwhelming at first, but with a little planning, you’ll be finished before you know it.
• Uncertainty about the process: Not sure where to start? Many banks make the process seamless, and they’ll even help guide you along the way.
• Long-standing loyalty: Staying with the bank you’ve always used might feel familiar. But remember: Better service and new benefits could be just a few clicks away!

With the right approach, switching financial institutions can be easy and more rewarding than you think!

Research your options

Already have a bank in mind? Great! If not, take your time choosing the right one. Here’s how:

• Ask your friends where they bank and what they like (or don’t like) about it.
• Compare interest rates, fees, and services from your top choices.
• Check online reviews for real customer experiences
• Visit a branch or check out their online/mobile banking to see if they’re a good fit.

Taking these steps will help you find a financial institution that fits your needs and your style.

What benefits do you want and need?

Think about how the right financial institution can make managing your money easier. Here are some services to consider:

• Bill pay and recurring payments: Pay your bills without stress.
• Early direct deposit: Get paid faster. More coffee runs? You decide.
• Mobile & online banking: Bank in your pajamas. No judgment here!
• Remote deposit: Deposit checks with a snap — no trips to the bank required.
• Loan services: Auto, mortgage, home equity, personal loans — make sure they’ve got you covered.
• High-yield interest accounts: Watch your savings grow faster.
• Insurance & investment services: Planning for the future just got easier.

Taking advantage of these options can streamline your finances and support your long-term financial goals.

Opening your new account

Opening a new account is usually quick and painless — some banks let you do it online in 10 minutes or less with just a small starting deposit. Before you close your old account, take a few weeks to get comfortable with your new one and allow time to:

• Transfer automatic payments and withdrawals.
• Receive and activate your new debit card (hello, shiny new card!).
• Link your old and new accounts for smoother transfers.
• Keep a cushion in your old account to cover any forgotten automatic payments (looking at you, Netflix and Hulu).

Reroute income and payments

Now is the perfect time to review and organize all automatic payments and deposits linked to your accounts. Start by making a detailed list of these transactions, including amounts and dates. Don’t forget sources of income that may need rerouting, such as:

• Direct deposits
• Utility bills
• Subscriptions and memberships
• Insurance premiums
• Loan payments

Once you’ve got your list, start updating your payment sources with your new bank details.

Hold tight — We’re not cutting ties just yet

So, you’ve updated all your payments? Probably not. But that’s okay! This waiting period is your safety net. It gives you time to catch any overlooked payments and avoid late fees. It’s all about staying ahead and ensuring a smooth transition.

When can you close your old account?

Once you’re confident that all payments and deposits have been successfully transferred, it’s time to say goodbye to your old account. Don’t forget to withdraw any remaining funds — either in cash or with a cashier’s check. Most banks let you close your account by submitting a formal request.

See? Switching financial institutions isn’t so hard after all! So, what are you waiting for? Go ahead and upgrade your banking experience today. Your future self (and your finances) will thank you!